INDUSTRIAL RELATIONS

Name: - Mihir Thakkar

Industrial Relations or Labour relations, is an expression used not only for relationships between
employers and Trade Unions, but also for those involving Government with the aim of defining
policies, facing labour problems. As Industrial Relations definition we can accept the concept of
the outfit of:

1) Rules for employment management;

2) Methods defining those rules;

3) Typology of actors (both employers and workers organizations and representatives, but also
State and institutional bodies);

4) Interaction processes between these entities. Many authors have quoted various definitions of
Industrial Relations. Some of the oft quoted definitions •

“The term Industrial relations explains the relationship between employees and management
which stem directly or indirectly from union-employer relationship”– V. Agnihotri. •

“Industrial relations are broadly concerned with bargaining between employers and trade union
on wages and other terms of employment. The day-to-day relations within a plant also constitute
one of the important elements and impinge on the broader aspects of industrial relations” – C.B
Kumar •

“Industrial relation is an art of living together for the purpose of production” – J.Henry •

“The subject of industrial relations deal with certain regulated and institutionalized relationship
in industry” – Allan Flanders. •

“The field of industrial relations include the study of workers and their trade unions,
management, employers’ association and state institutions concerned with the regulation of
employment” – H.A Clegg Nature of industrial Relations:

Industrial relations are concerned with the organisation and practice of multi-pronged
relationship between the workers and the union in an industrial enterprise.

Such relationships may be either in organised form or unorganised plants. Industrial relation do
not function in a vacuum but multi-dimensional in nature and are conditioned with three
determinants (i) Institutional factors (ii) Economic factors (iii) Technological Factors. (i) Under
institutional factors are included items such as state policy, labour laws, voluntary codes,
collective agreements, labourers unions and employers’ organisation, social institution like the
community, caste, joint family, creed, system of beliefs, etc, attitudes of work, systems of power
status, relative nearness to the centers of power; motivation and influence and industrial
relations. (ii) Under economic factors are included economic organisation (socialist, capitalist,
communist, individual ownership, company ownership, government ownership) powers of
labour and employers, the nature and composition of the labour force and the sources of supply
and demand in the labour market. (iii) Under technological factors come the techniques of
production, modernization and rationalisation schemes, capital structures etc. The development
of industrial relations is not due to any one single factor but rather been largely determined by
the conditions existing at the eve of the industrial revolution in the Western Europe, and the
social economic and political situation available in different locations.

The changes which took place, since earlier days, did not follow a uniform pattern in different
countries but they reflected such economic and social forces which ad long times shaped the
principle and practices of the industrial relations in the western countries. From the earliest phase
of industrialization from which the workers formerly working with their own tools entered into
power driven factories, owned by owners: to minimization of breakdown due to industrial
conflicts of later state and further to industrial peace and hence to human relations approach to
raise productivity in an democracy based on labour partnerships not only for sharing the profits
but of managerial decisions themselves has been a long journey indeed.
Scope of industrial Relations: The concept of industrial relation has a very wide meaning
and connotation. It means that the employer-employee relationship confines itself to the
relationship that emerges out of the day-to-day association of the management and the labour. In
its wider sense, industrial relations include the relationship between employers in the course of
running an industry and may project it to spheres which may transgress to the areas of quality
control, Marketing, price fixation and disposition of profits among others. An industry is a social
world in miniature. Associations of various persons, workmen, supervisory staff, management
and employer in industry create industrial relationships. This affects the economic, social and
political life of the whole community. Thus, industrial life creates a series of social relationship
which regulate the relations and working of not only workmen and management but also of
community and industry. Industrial relations are inherent in an industrial life: a) labour relations:
Relations between union-management(Also called Labourmanagement relations) b) Employer-
employee relations: relations between Management and employee c) Group Relations: Relations
between various groups of workmen d) Community or public relations: Relations between
industry and society. Objectives of Industrial Relations: Industrial Relations are a bonding
between the employee and employer. It also adds many other relations which are chain of
previous relations. So the motto of any industry should be sustaining good relationships between
the employer and employee.

Primary objective should be to bring about good and healthy relationship between two partners
in the industry.

As per Kirkaldy “The state of industrial relations in a country is intimately connected with the
form of its political government and the objectives of an industrial organisation may change from
economic to political ends”

Labour management committees have recognised certain fundamental principles as objectives

• Good labour management relations depend on employers and trade unions being able to deal
with their mutual problems freely, independently and responsibly.

• The trade unions and employers and their organisation are desirous of resolving their problems
through collective bargaining though in resolving such matters the assistance of appropriate
government agencies may be necessary in public interest, collective bargaining, therefore is the
corner stone of the good relations and hence the legislative framework of industrial relations
should aid the maximum use of their process mutual accommodation.

• The workers and employers organisation should be desirous of associating with the
government agencies in consideration of the general public, social and economic measures
affecting employers and workers relations.